Monday, 27 July 2009

Debtors prisons

Junaid Malik thought that it happened only to those who had lost their jobs and could no longer afford to pay off debt.

But earlier this month, after missing his monthly credit card payment, he received the call – a collections agent from his bank threatening him with jail if he did not immediately pay what he owed.

...

While customers condemn such tactics, the banks say they are necessary because the Emirates has no institutional framework, such as a credit bureau or a bankruptcy court, for dealing with bad debts

http://www.thenational.ae/apps/pbcs.dll/article?AID=/20090726/NATIONAL/707259844

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